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Tsikoteer
- Join Date
- Jun 2005
- Posts
- 866
May 11th, 2007 11:41 PM #22You do realize as to why Nokia and SE carry high premiums for their products? Simple economics tells you that the more you maintain your dominance in a given marketshare, the greater its value would be on an overall perspective.
I still don't trust the quality of China-branded phones......yet. I'm thinking that they will still need at least three years to improve themselves first. Yes they are cheap in price but for one, not many people are aware of Chinese-branded phones. Two, resale value is unknown. The brand name hasn't been built yet so brand credibility cannot be inferred that easily. Three, reliability of these Chinese-branded phones is unknown. They are a newcomer and so we don't trust their quality yet. Nokia has had years of experience listening to criticisms when they first operated their China factory. Now after 5 years or more, they've pushed themselves to improve their PRC factory and now, they churn the most reliable N series handsets from the company's main line.
Lenovo is a different thing all together. Mainland China-based sila pero IBM is still the biggest shareholder of the company. Still somewhat multinational.
But more than this, you're failing to understand one thing:
QUALITY AND PRICE ARE INVERSELY PROPORTIONAL.
In this planet, these two are exactly opposite and cannot be achieved at all. It's capitalist economics (or world economics). If you want "utopian economics" (100% win-win), you won't find any of it in this planet nor in this lifetime. It's sad indeed...... but this is harsh reality. Deal with it.
It is like how it's a real pain for companies to maintain both (if not impossible to do). For example, Samsung first started off with making R7 LCD TV sets in Korea. After they couldn't keep with pricing (due to lower consumer interest), they had to use a lower-quality facility like the one in Thailand. Siguro, come after 5 years, the Thai factory will have massively improved production & thus lesser errors pero to maintain this, they would have to charge a higher premium. If the general public can't keep up (they still buy less HDTVs), then Samsung would then be forced to scout for a newer place where labor is cheaper than Thailand (say Africa or Indonesia). Same reason why things in countries like RP, Africa and the developing world are sold cheap versus first-world areas where prices are exorbitant.
How does this relate to the first sentence above:
Nokia simply reserves the right to carry a premium because the products that they currently make deserve it.
They have to be even more agressive and heck even now, they are facing against the long-time players of the phone industry. It takes years to build a brand name and for these Chinese-branded phone makers, they're not ready yet for primetime. It takes years for a company to be trusted by the overall general consumer market.
In the end, I'd say they may probably be way improved come after 5 years. Pero for this year, I'd rather buy a Nokia N-series or a new Motorola or a new SE over a Chinese-brand phone.
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